How To Invest In Crypto Under 18?

Cryptocurrency has taken the financial world by storm, and many young investors are eager to get in on the action. However, if you are under 18, the process of investing in crypto can be a bit more complicated. Don’t worry,…

Cryptocurrency has taken the financial world by storm, and many young investors are eager to get in on the action. However, if you are under 18, the process of investing in crypto can be a bit more complicated. Don’t worry, though, as we have some tips and tricks to help you navigate this exciting and potentially lucrative world of cryptocurrency.

Investing in crypto under 18 may seem daunting, but with the right knowledge and guidance, it can be an excellent opportunity to learn about finance and potentially earn some money. In this article, we will explore the steps you can take to invest in crypto under 18, including the legal and practical considerations you need to keep in mind. So, let’s dive in and discover how you can start investing in crypto today!

How to Invest in Crypto Under 18?

How to Invest in Crypto Under 18?

If you’re under 18, investing in cryptocurrency may seem like an impossible task. However, there are ways for minors to invest in crypto without breaking any laws. In this article, we will explore the various options you have as a minor to invest in cryptocurrency.

1. Use a Custodial Account

One of the easiest ways for minors to invest in cryptocurrency is to use a custodial account. These accounts are managed by an adult, usually a parent or guardian, who is responsible for making investment decisions on behalf of the minor. Custodial accounts are a popular option for parents who want to teach their children about investing.

To open a custodial account, you’ll need to find a cryptocurrency exchange that offers this service. Some popular exchanges that offer custodial accounts include Coinbase and Gemini. Once you’ve found an exchange, you’ll need to provide some personal information, such as your name, date of birth, and social security number.

Benefits of Using a Custodial Account

  • Allows minors to invest in cryptocurrency
  • Teaches children about investing
  • Can be managed by an adult

Drawbacks of Using a Custodial Account

  • Investment decisions are made by the adult
  • May require additional paperwork
  • May have higher fees

2. Use a Peer-to-Peer Marketplace

Another option for minors to invest in cryptocurrency is to use a peer-to-peer marketplace. These marketplaces allow users to buy and sell cryptocurrency directly with each other, without the need for a middleman.

To use a peer-to-peer marketplace, you’ll need to find a platform that allows minors to create an account. One popular platform that allows minors is LocalBitcoins. Once you’ve created an account, you can search for sellers who are willing to sell cryptocurrency to minors.

Benefits of Using a Peer-to-Peer Marketplace

  • No need for a middleman
  • Can be used by minors
  • May have lower fees

Drawbacks of Using a Peer-to-Peer Marketplace

  • May have higher risk of fraud
  • May require more research to find a reputable seller
  • Limited payment options

3. Use a Gift Card

If you’re unable to use a custodial account or a peer-to-peer marketplace, another option is to use a gift card. Some cryptocurrency exchanges, such as Paxful, allow users to buy cryptocurrency with gift cards.

To use a gift card to buy cryptocurrency, you’ll need to find a seller who is willing to accept it. Paxful has a list of sellers who accept gift cards, and you can filter the list by payment method to find a seller who accepts your gift card.

Benefits of Using a Gift Card

  • No need for a bank account
  • Can be used by minors
  • Some gift cards may have lower fees

Drawbacks of Using a Gift Card

  • May have higher fees
  • May require more research to find a reputable seller
  • Limited payment options

4. Use a Bitcoin ATM

If you live in an area with a Bitcoin ATM, you can use it to buy cryptocurrency. Bitcoin ATMs allow users to buy cryptocurrency with cash, and some ATMs don’t require ID verification.

To use a Bitcoin ATM, you’ll need to find one near you. Coin ATM Radar is a website that lists Bitcoin ATMs by location. Once you’ve found an ATM, you can follow the instructions to buy cryptocurrency.

Benefits of Using a Bitcoin ATM

  • No need for a bank account
  • Can be used by minors
  • Some ATMs don’t require ID verification

Drawbacks of Using a Bitcoin ATM

  • May have higher fees
  • May have limited availability
  • May require more research to find a reputable ATM

5. Use a Cryptocurrency Faucet

If you don’t have any money to invest in cryptocurrency, you can use a cryptocurrency faucet to earn free cryptocurrency. Cryptocurrency faucets are websites that give out small amounts of cryptocurrency for completing simple tasks, such as watching ads or playing games.

To use a cryptocurrency faucet, you’ll need to find a reputable one. Some popular faucets include FreeBitco.in and Moon Bitcoin. Once you’ve found a faucet, you can create an account and start earning cryptocurrency.

Benefits of Using a Cryptocurrency Faucet

  • No need for money to invest
  • Can be used by minors
  • Can be a fun way to learn about cryptocurrency

Drawbacks of Using a Cryptocurrency Faucet

  • May not earn much cryptocurrency
  • May require a lot of time to earn significant amounts
  • May be limited by the number of tasks available

6. Use a Crypto Investment App

There are several investment apps that allow users to invest in cryptocurrency. Some popular apps that allow minors to invest include Robinhood and Coinbase.

To use a crypto investment app, you’ll need to create an account and provide some personal information. Once you’ve created an account, you can start investing in cryptocurrency.

Benefits of Using a Crypto Investment App

  • Easy to use
  • Can be used by minors
  • May have low fees

Drawbacks of Using a Crypto Investment App

  • Investment decisions are made by the user
  • May require additional paperwork
  • May have limited cryptocurrency options

7. Use a Trust Fund

If you have a trust fund, you may be able to use it to invest in cryptocurrency. Some trust funds allow investments in alternative assets, such as cryptocurrency.

To use a trust fund to invest in cryptocurrency, you’ll need to speak with the trustee. The trustee will be able to provide you with information on whether or not cryptocurrency is an allowable investment.

Benefits of Using a Trust Fund

  • Allows investments in alternative assets
  • Can be used by minors
  • May have lower fees

Drawbacks of Using a Trust Fund

  • May require additional paperwork
  • Investment decisions are made by the trustee
  • May have limited cryptocurrency options

8. Use a Parent’s Account

If your parent or guardian has a cryptocurrency account, you may be able to invest in cryptocurrency using their account.

To use a parent’s account, you’ll need to speak with them and get their permission. Once you have permission, you can use their account to invest in cryptocurrency.

Benefits of Using a Parent’s Account

  • Allows minors to invest in cryptocurrency
  • No need to open a new account
  • May have low fees

Drawbacks of Using a Parent’s Account

  • Investment decisions are made by the parent
  • May require additional paperwork
  • May have limited cryptocurrency options

9. Use a Cryptocurrency IRA

If you have earned income, you may be able to use a cryptocurrency IRA to invest in cryptocurrency. Cryptocurrency IRAs allow users to invest in cryptocurrency using tax-advantaged retirement accounts.

To use a cryptocurrency IRA, you’ll need to find a provider that offers this service. Some popular providers include BitIRA and iTrustCapital. Once you’ve found a provider, you can open an account and start investing in cryptocurrency.

Benefits of Using a Cryptocurrency IRA

  • Allows investments in cryptocurrency using tax-advantaged accounts
  • Can be used by minors with earned income
  • May have low fees

Drawbacks of Using a Cryptocurrency IRA

  • May require additional paperwork
  • Investment decisions are made by the user
  • May have limited cryptocurrency options

10. Use a Cryptocurrency Education Fund

Some states offer cryptocurrency education funds that allow minors to invest in cryptocurrency. These funds are designed to help students learn about cryptocurrency and invest in it at the same time.

To use a cryptocurrency education fund, you’ll need to find out if your state offers this program. If it does, you’ll need to apply and provide some personal information. Once you’ve been approved, you can start investing in cryptocurrency.

Benefits of Using a Cryptocurrency Education Fund

  • Allows minors to invest in cryptocurrency
  • Designed to help students learn about cryptocurrency
  • May have low fees

Drawbacks of Using a Cryptocurrency Education Fund

  • May not be available in all states
  • May require additional paperwork
  • May have limited cryptocurrency options

In conclusion, minors have several options for investing in cryptocurrency. Whether you choose to use a custodial account, a peer-to-peer marketplace, or a gift card, it’s important to do your research and choose a reputable platform. By investing in cryptocurrency at a young age, you can set yourself up for financial success in the future.

Frequently Asked Questions

What are the risks of investing in crypto under 18?

Investing in crypto under 18 comes with a lot of risks. As a minor, you don’t have full legal capacity to enter into contracts, and some exchanges may not allow you to trade cryptocurrencies. Additionally, crypto markets are highly volatile, and you could lose all your investment in a matter of minutes if you make the wrong decision.

Moreover, investing in crypto may lead to addiction, as it requires constant monitoring and attention. It’s essential to understand the risks involved and consult with a financial advisor before investing any money.

Can I use my parent’s account to invest in crypto?

It’s not recommended to use your parent’s account to invest in crypto under 18. Most exchanges require you to verify your identity, and using someone else’s account violates the terms of service. Additionally, it’s crucial to understand the risks and benefits of investing in cryptocurrencies, and your parents may not have the necessary knowledge to guide you in this field.

If you’re interested in investing in crypto, it’s best to wait until you’re of legal age and have your own account. Alternatively, you can learn about the market and practice trading on a demo account to gain experience before investing real money.

What are the alternatives to investing in crypto under 18?

If you’re under 18 but still interested in investing, you can consider other options, such as stocks, mutual funds, or bonds. These investments may be less risky and more suitable for minors, as they are regulated by government agencies and have a more stable market.

You can also open a savings account or a CD (Certificate of Deposit) to earn interest on your money. These options may not offer high returns, but they are safe and can help you build a solid financial foundation for the future.

Can I invest in crypto with my allowance money?

Yes, you can invest in crypto with your allowance money. However, it’s essential to understand the risks involved and not to invest more than you can afford to lose. Since crypto markets are highly volatile, you could lose all your investment in a matter of minutes.

It’s also crucial to consult with your parents or a financial advisor before investing any money. They can help you understand the market and guide you in making informed decisions.

What resources can I use to learn about investing in crypto?

There are many resources available online to help you learn about investing in crypto. You can start by reading articles and books on the topic, watching educational videos, and joining online communities to connect with other investors.

Additionally, some exchanges offer educational resources and tools to help beginners understand the market and make informed decisions. It’s essential to take the time to research and learn about the market before investing any money.

HOW TO BUY CRYPTO UNDER 18!


In conclusion, investing in crypto under 18 can be a bit challenging, but it’s not impossible. With a little bit of research and some guidance from a trusted adult, you can start investing in crypto and potentially earn some profits.

First and foremost, it’s important to educate yourself about the crypto market and the different types of cryptocurrencies available. You should also be aware of the risks involved in investing in crypto and how to manage them.

Secondly, you’ll need to find a trusted adult who can help you set up a crypto wallet and buy your first cryptocurrency. This could be a parent, guardian, or even a trusted family friend who has experience in investing in crypto.

Lastly, it’s important to start small and only invest what you can afford to lose. Remember that the crypto market is highly volatile, and there’s no guarantee that you’ll make a profit. However, with patience and a good strategy, you can potentially earn some profits and build a solid foundation for your future financial goals.

Overall, with the right mindset, knowledge, and guidance, investing in crypto under 18 can be a great opportunity to learn about the world of finance and potentially earn some profits.

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